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Tempe, Arizona-based Align Technology, Inc. (ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists. Valued at $11.2 billion by market cap, the company also manufactures software for dental laboratories and dental practitioners. The leading manufacturer of clear aligners is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Wednesday, Apr. 30.
Ahead of the event, analysts expect ALGN to report a profit of $1.52 per share on a diluted basis, down 6.2% from $1.62 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect ALGN to report EPS of $8.04, up 14.7% from $7.01 in fiscal 2024. Its EPS is expected to rise 11.3% year over year to $8.95 in fiscal 2026.
ALGN stock has considerably underperformed the S&P 500’s ($SPX) 4.2% losses over the past 52 weeks, with shares down 54.9% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 6.9% dip over the same time frame.
ALGN’s underperformance can be largely attributed to challenges in the U.S. market, including the impact of a stronger U.S. dollar and decreased demand for Clear Aligner sales. These factors resulted in lower EPS, as well as pressure on operational metrics such as gross and operating margins due to currency fluctuations and restructuring charges.
On Feb. 5, ALGN shares closed up marginally after reporting its Q4 results. Its adjusted EPS of $2.44 surpassed Wall Street expectations of $2.43. The company’s revenue was $995.2 million, falling short of Wall Street forecasts of $997 million. For Q1, ALGN expects revenue in the range of $965 million to $985 million.
Analysts’ consensus opinion on ALGN stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” two give a “Hold,” and one recommends a “Moderate Sell.” ALGN’s average analyst price target is $254.50, indicating a robust potential upside of 76.3% from the current levels.
